BANKING AFFAIRS

Detailed explanation-1: -Ans. The Asian Clearing Union (ACU) was established with its head-quarters at Tehran, Iran, on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for promoting regional co-operation.

Detailed explanation-2: -Asian Clearing Union (ACU) is a payment arrangement whereby the participants settle payments for intra-regional transactions among the participating central banks on a net multilateral basis.

Detailed explanation-3: -Members. Currently (2022), the members of ACU are the central banks of Bangladesh, Bhutan, Iran (not active owing to international banking sanctions), India, Maldives, Nepal, Pakistan, Sri Lanka, and Myanmar.

Detailed explanation-4: -What is the Asian Clearing Union? Asian Clearing Union (ACU) is a payment settlement forum whereby the participants settle payments for transactions that take place within the regions and this facilitated through the participating central banks on a wider basis. This is an important topic for IAS exam aspirants.

Detailed explanation-5: -Establishment of Asian Clearing Union (ACU) The Draft Agreement Establishing the ACU was finalized at a meeting of senior officials of the Governments and central banks held at ESCAP, Bangkok, in December 1974 after five central banks (India, Iran, Nepal, Pakistan, and Sri Lanka) signed the Agreement.